De Brauw has developed a spreadsheet model that indicates to
potential donors and cultural organisations how the new Donations
Act impacts on deductibility of donations. Cultural organisations
are suffering from the government's introduction of extensive
spending cuts, in particular an increase in VAT and a lowering of
subsidies. To partially compensate for these cuts, the tax
deductibility of donations will be expanded as of 1 January
2012.
Dick Hofland, partner at De Brauw: "Our model creates a simple
way to make two types of calculation. Using the model, one type
calculates the net "cost" to a donor of a gross donation
as a result of tax deductibility. The other type, if the donor has
a certain net amount in mind, calculates how much a net donation
will "yield" to the cultural organisation. The model can
help cultural organisations in fund-raising campaigns in the
private sector."
Hofland refers to the Concertgebouw's successful share issue
this year, which De Brauw advised on. The issue has so far raised
EUR 4 million and will be even more attractive under the new
Donations Act.
Please note that the spreadsheet model has to be saved before
viewing.
Click here to download the spreadsheet model free of
charge
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
